16bn ride-hailing trips in 2017
A recent mobility study on regional ride-hailing markets finds that 16 billion ride-hailing trips were completed worldwide in 2017 and forecasts 24 billion completed trips by the end of 2018.
The recent report by ABI Research analysed the number of ride-hailing trips completed by users in different regions and evaluated market shares for each region. The results showed that just over 70% of ride-hailing trips were completed in Asia alone, with the next biggest markets being North America and Latin America, with only 5% of trips being completed in Western Europe due to stricter regulation.
‘The sheer size of the Asian ride-hailing market has prompted numerous companies, both local and foreign, to try and establish a foothold in the local markets,’ said Shiv Patel, research analyst at ABI Research. ‘In direct contrast to Western Europe and North America, vehicle ownership is relatively low in Asian markets due to the large expense and impracticality for consumers in large cities. This has spurred the growth of dynamic ride-hailing services, where the average cost of a trip can be as low as US$0.10 per mile. This low cost combined with a favourable regulatory environment has really helped foster the use ride-hailing services.’
It hasn’t been all success stories for those operating in Asia, however. Some foreign companies, such as Uber, have struggled in the region, leading to its exit out of China and South-East Asia.
Uber’s withdrawal from the region, however, has helped create extra opportunities for local players, as they look to establish themselves and expand within the region and globally. For instance, Didi Chuxing has used Uber’s exit to establish a strong leading market position in China, with over 90% market share of the largest ride-hailing market in the world.